Prime Minister Julia Gillard will today tell political and business leaders in China that the region must work together to curb the aggression from North Korea.

Ms Gillard will use her speech to the plenary session of the Bo'ao Asia Forum on Hainan Island to directly address Australia's concerns about the rogue state, and link it to the future prosperity of the region.

The Prime Minister will tell delegates that the rapid rate of economic growth in some parts of Asia will prompt strategic shifts, but that does not have to end in conflict.

All countries in the region share a deep interest in strategic stability – but the consequences of conflict are ever more severe for us all. This is nowhere more clear than on the Korean peninsula. There, any aggression is a threat to the interests of every country in the region.

Julia Gillard

"All countries in the region share a deep interest in strategic stability – but the consequences of conflict are ever more severe for us all," Ms Gillard will tell delegates.

"This is nowhere more clear than on the Korean peninsula.

"There, any aggression is a threat to the interests of every country in the region.

"For this reason, I do welcome the growing cooperation of all regional governments to prevent conflict on the Korean peninsula and to counter North Korean aggression."

Ms Gillard will also use her address to reaffirm Australia's significant interest in helping to develop the Asian region through "well designed markets, and well-targeted investment" in the region's people.

The Prime Minister will again point to climate change as one of the challenges currently facing Asian nations and their neighbours.

She will tell forum participants that their discussions about the carbon pricing schemes introduced in some provinces of China, Japan, and in Australia will be a critical point for discussion at the forum.

Ms Gillard is expected to raise both Australia's concerns about North Korea, and the broader issue of regional cooperation, when she meets with new Chinese president Xi Jinping for the first time later this afternoon.

It will be the first time the pair meet as leaders, and Ms Gillard has already flagged her hope of building a stronger relationship with China's new leadership team.